Can I claim Job seekers allowance following VR at 55 if I defer taking my pension?

itsmeagain

Hi all.

I'm 55, just about to take VR (12 months pay @ circa £60k), with many years paye full NI contributions.
I also have a DB that will pay £28k PA (now if I take it), plus £120k in AVC's (company DC scheme).
I was wondering If I could claim any benefits (such as Job seekers allowance)?
If I am permitted any benefits, does taking or delaying taking my DB or AVC's make any difference to benefit eligibility?

JoeCrystal

The government usually assume that you will be taking your pension at the default pension ages of your scheme. If you go higher than your default pension age, they would consider that your income will include pension nominally regardless if you claim them or not.

Frankly, considering your £60k will smash the capital rules anyway, you won't be getting Universal Credit, but you will be getting contribution-based New Style Jobseeker's Allowance for up to six months. However, you will also need to take reasonable steps to look for work as well.

Why bother going through the hoops to claim benefits when you are already significantly better off than a large majority of the population?

DairyQueen

Are you serious?

If so, the Benefits board may be a better place to seek information (but take a crash helmet and be prepared to duck).

DairyQueen

JoeCrystal said:

The government usually assume that you will be taking your pension at the default pension ages of your scheme. If you go higher than your default pension age, they would consider that your income will include pension nominally regardless if you claim them or not.

Frankly, considering your £60k will smash the capital rules anyway, you won't be getting Universal Credit, but you will be getting contribution-based New Style Jobseeker's Allowance for up to six months. However, you will also need to take reasonable steps to look for work as well.

Why bother going through the hoops to claim benefits when you are already significantly better off than a large majority of the population?

+1 ^^.

I thought that the MSM had been unfairly stoking the flames of intergenerational discord. I am beginning to see the light.

pjread

I think if it was non-voluntary redundancy and a genuine intent/desire not to retire yet, the flames might be a touch lower....

I suspect even then, there wouldn't be much on the table (unless you can e.g. bung that 60k into the pension so it 'doesn't exist'...)

itsmeagain

DairyQueen said:

Are you serious?

If so, the Benefits board may be a better place to seek information (but take a crash helmet and be prepared to duck).

Why wouldn't I claim if I was entitled to do so?
I didn't want VR but was threatened with CR (with unknown terms) if I didn't take VR.
I've paid tax & NI since 16 without claiming anything.
I would still be working for the next 6 months if I hadn't been pushed.

Are you suggesting that a person that has lost their job and could afford to live without benefit entitlement shouldn't take entitlement?

itsmeagain

JoeCrystal said:

The government usually assume that you will be taking your pension at the default pension ages of your scheme. If you go higher than your default pension age, they would consider that your income will include pension nominally regardless if you claim them or not.

Frankly, considering your £60k will smash the capital rules anyway, you won't be getting Universal Credit, but you will be getting contribution-based New Style Jobseeker's Allowance for up to six months. However, you will also need to take reasonable steps to look for work as well.

Why bother going through the hoops to claim benefits when you are already significantly better off than a large majority of the population?

Are you suggesting that 6 months JSA is so difficult and time consuming to claim that it's not worth the effort?

I don't get this about the fact that i'm better off than the majority of the population suggests that I shouldn't claim it. Do you think that people that are worth £1 million or on £40k PA pension shouldn't bother claiming their state pension because they don't need it?

itsmeagain

pjread said:

I think if it was non-voluntary redundancy and a genuine intent/desire not to retire yet, the flames might be a touch lower....

I suspect even then, there wouldn't be much on the table (unless you can e.g. bung that 60k into the pension so it 'doesn't exist'...)

I didn't want VR but was threatened with CR (with unknown terms) if I didn't take VR.
What's the relevance in the £60k? I thought JSA was not means tested? I will be putting £30K in my pension.

westv

If you are going to be looking for work then I see no reason why you shouldn't claim.

Malthusian

DairyQueen said:

Are you serious?

Why wouldn't they be? Pensions are to provide for retirement, not periods of unemployment in working life. And the OP is at the latter stage. That's why they are, er, exempt from means testing - until you have reached retirement age.

The Government does not want people to give up on work 13 years early, paying less tax, claiming more means tested benefits and suffering a severely straitened lifestyle, because they were made redundant at 55 and are forced to claim their pension.

JoeCrystal

itsmeagain said:itsmeagain said:

Are you suggesting that 6 months JSA is so difficult and time consuming to claim that it's not worth the effort?

I don't get this about the fact that i'm better off than the majority of the population suggests that I should claim it. Do you think that people that are worth £1 million or on £40k PA pension shouldn't bother claiming their state pension because they don't need it?

Not exactly. If you are entitled, then you are more than welcome to claim JSA. I am just saying that you are more than capable of retiring right away from the sounds of your post. When I was claiming JSA back then, it was a hassle having to go to fortnightly meetings and having to note down every single step you took in searching the jobs just for £47 per week (although I think it is slightly higher thankfully) (and they sometimes check with the companies if you actually did apply with them to make sure you was telling the truth!) and your interviewer every meeting treating you as a lazy !!!!!! who couldn't find a job after a fortnight on JSA. Of course, you get sanctioned with no benefits if you missed a single appointment (even with a valid reason) or didn't turn up for one of their courses. Hopefully, things have improved since over a decade ago!

But yes, if you are looking for jobs then contribution-based JSA would be just right but benefit wise, it is very slim otherwise. I think it is more of your tone that you want to see if there are any other benefits other than JSA that came across as a tad annoying to me. )

Umm, yes to your latter question. I looked forward to the day when they introduce means-testing like the Australian style.